“My biggest challenge is resisting the urge to try and legitimize my emotional responses…”

Feedback in:

Hi there,

My biggest challenge is resisting the urge to try and legitimize my emotional responses as other than emotional responses. For example, I take a position and the stock drops immediately. Day 1 is explained by volatility. Day 2 triggers intuition to sell, but I “know” my choice is right so I stay in. Day 3 is a “red day” in the market so the drop isn’t about my decisions; it’s just the market. Day 4….well my decisions were correct so there’s an endless stream of “rational” reasons that allow me to preserve my decision choice while losing money. Now I realize two things 1. It was always about fear, hope, and ego, 2. None of it matters in trend following because, if I had been trend following, I would have had a plan and been out on day 2. Otherwise, a lesser challenge is mining the work of trend following for how to start with smaller account.

Cheers,
Mark

Nice feedback. Sounds like you are on the path. More here.

“I have jumped from one to another looking for a right one, but I still can’t manage to find consistent profits…”

Feedback in:

Hey Michael,

This is Roberto. I’ve been listening to your podcast for a few days, I had not listened to it before and I’ve found it very interesting. Your approach of getting involved in whatever market offers an opportunity is something I totally share with you. However, to this day I’m still not a consistently profitable trader and I have been around for quite some time now (on and off for more than 8 years). I have tested some strategies (mostly discretionary) and I have jumped from one to another looking for a right one, but I still can’t manage to find consistent profits. I wanted to write you to see how to get started on trend following trading as I share with you many of the views you have about trading.

Best regards

Stop jumping. Start learning.

Dive Into Trend Following Resources…

Michael Covel
Michael Covel

Michael Covel Trend Following Resources:

Third Party Trend Following Resources:

  • A Century of Evidence on Trend Following Investing (PDF)
  • Two Centuries of Trend Following (PDF).
  • On the Origins and Nature of Trend Following (WEB)
  • Speculation as a Fine Art: Dickson Watts (PDF)
  • Memoirs of Extraordinary Popular Delusions by Charles MacKay Volume 1; 1841 (PDF)

“That’s why a strategy that can capture the momentum of the crowd without fighting it appeals to me…”

Feedback in:

I’ve been a financial planner, boutique startup venture capitalist, and business leader. I’ve never seen anything that can reliably, consistently, and repeatably generate returns that significantly beat the broader market. I believe most of Wall Street is a scam to loot the poor and middle class. I agree with Michael Burry that a bubble is forming in passive indexing, but am also concerned about exposure to losses from the whims of HFTs or central bank action. That’s why a strategy that can capture the momentum of the crowd without fighting it appeals to me and I want to learn more.

Dive in.

Ep. 882: Steve Herz Interview with Michael Covel on Trend Following Radio

Steve Herz
Steve Herz

Subscribe to Trend Following Radio on iTunes

To stand out, to attract the attention of those who can raise your profile, to protect yourself during lean times, or to gain the interest of future employers, you must harness three critical communication traits that human beings respond to most: AWE: A―Authority. W―Warmth. E―Energy. When all else is equal―education, work ethic, intelligence, experience, ambition―the single biggest factor in winning business, promotions, friendships, or followers hinges on our ability to communicate and connect. Mastering AWE gives you an unparalleled advantage over the competition, no matter your field.

Steve Herz, who has represented and coached dozens of sports, media, and entertainment leaders over the course of nearly three decades, delivers a step-by-step program that helps you understand and hone your AWE skills. Packed with inspiring success stories, grounded in the latest social psychology and scientific research, and featuring “insider” anecdotes from some of the most popular entrepreneurs and professionals in broadcasting, sports, and the corporate world―many personally coached by Herz.

Bio: As the President and Founding Partner of IF Management, Steve Herz is one of the most influential voices in the broadcast space, as well as a respected business leader.

In this episode of Trend Following Radio:

  • Don’t Take Yes for an Answer
  • Confidence and Strength
  • Using Authority
  • Changing Communication Behaviour
  • Energy Definition
  • Speaking and Listening

Mentions & Resources:

“The biggest challenge I have is with subscriptions. If traders were all that successful…”

Feedback in:

Hi Michael.

The biggest challenge I have is with trading subscriptions. If traders were all that successful, why are they selling subscriptions? If I were a trader making millions in the market place, what is the benefit of offering a subscription service other than to guarantee a steady return?

Dave

I don’t offer a subscription. I give you the rules — you go. Boom. And steady returns? That’s bullshit.